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Commonwealth Bank of Australia and CSL led the Australian sharemarket higher on Tuesday as investors bet on both companies beating expectations when they report full-year results on Wednesday.

The benchmark S&P/ASX 200 Index closed up 1 per cent, 52.05 points, at 5160.7. The broader All Ordinaries Index also gained 1 per cent.

CBA, the biggest stock on the bourse, continued its winning streak, hitting another record high on Tuesday, ­up 1 per cent to $74.55.

“Like any of the top 10 stocks, if CBA produces results that are in line with, or better than, expectations it will help improve the broader market sentiment,” Platypus Asset Management chief investment officer Donald Williams said.

CBA is expected to reward shareholders with stronger dividends as it reports the biggest ever profit by an Australian bank.

Analysts are tipping the bank will post between $7.6 billion and $7.7 billion in profit, topping last year’s $7.1 billion result.

The other three of the big four banks also closed higher, as did Telstra.

Healthcare best performing sector

Healthcare was the best-performing sector, pulled higher by CSL.

The blood products supplier jumped 4 per cent to $67.80.

“CSL’s growth has accelerated in the past 12 months and another good set of numbers is expected tomorrow,” Mr Williams said.

Pathology and health clinic operator Primary Health Care also advanced 5.2 per cent to $5.29 ahead of reporting its full-year results on Wednesday.

“A solid performance should also be expected from Ramsay Health Care in late August,” UBS healthcare analyst Andrew Goodsall said.

Mining heavyweights BHP Billiton and Rio Tinto continued to build on Monday’s strong gains, finishing up 0.4 per cent and 0.8 per cent, respect­ively, as the iron ore price rose to $US138; its highest since April.

Property group Stockland lost 2.9 per cent to $3.70 after profits fell 78.5 per cent, largely because of weakness in the domestic housing market.

REA Group lost 4.4 per cent to $32.86 after net profit came in only slightly ahead of market expectations.

“REA trades at a big premium to the market because it is priced for a lot of growth, meaning it is expected to deliver at least the consensus number,” Mr Williams said.

But Platypus was not selling.

“On a longer-term basis, we think the company can continue to deliver ­double-digit growth for a number of years.”

Bradken got a boost of 12.4 per cent despite announcing a 33 per cent decline in net profit to $66.9 million for the year. Sales were down 10 per cent, depressed by less demand in the mining industry it services but investors had expected worse given the challenges in the sector.

Bradken managing director Brian Hodges said he expected conditions to remain ­challenging and 2013-14 results to be “broadly comparable” with 2012-13.

One of Australia’s largest mining services companies, Leighton Holdings, rose 3.4 per cent to $17.27.

Leighton, which reports on Wednesday, is up 9 per cent in two days as investors expect the company to show its debt levels are under control.

Leighton is less exposed to the decline in demand for mining services than Bradken because it also derives income from infrastructure construction, Mr Campbell said.

Computershare, WorleyParsons and Southern Cross Media also report on Wednesday.